I don’t pretend to understand all the ramifications of the “deal” struck in Congress recently to keep us from going over the fiscal cliff. But the complaints from the political right-wing suggest that the deal was a good thing for the rest of the country. I figure if the Tea Party doesn’t like it, it must be a good thing for the majority of people in this country.
I do wonder, however, whether it might have been better in the long run if we had fallen off the cliff — on our collective butts — in order to force this country to eliminate some of the fat in our budget (starting with defense spending, of course) and make all of us pay more taxes — given the fact that we are taxed at a very low rate compared with the rest of the “developed” world, and also given the fact that our economy thrived when we were paying more in taxes. I was especially hoping for tax raises on the wealthy who have benefitted mightily from the Bush tax cuts. As I understand it, the new deal will raise taxes on individuals who make above $400,000 a year and that will help reduce the deficit somewhat. But a great many people who make a great deal of money will still avoid paying their share.
There’s more: one of the more interesting ramifications of the deal is the complaint we are hearing from some of the wealthy who have threatened to discontinue giving to charities. A recent story on HuffPost focusing on this issue caught my eye. In that story we are told that
Legislation passed by the Senate late Tuesday night will limit the amount wealthy people can claim for charitable deductions on their taxes. While some say donors shouldn’t be motivated by the amount of money they can write off, others –- including some nervous nonprofits –- argue that tax breaks for charitable giving should have been left untouched in the deal.
One such dissenter is Ari Fleischer, a former White House press secretary under President George W. Bush. Fleischer tweeted his distaste for the deduction decision on Tuesday:
“I increased donations to charity in 2012. This deal limits my deductions so I, & many others, will likely donate less in 2013.”
— Ari Fleischer (@AriFleischer) January 1, 2013
When I was a kid I loved playing marbles. We played “keepies” where the winners get to keep the marbles they hit out of a ring drawn in the dirt. Every now and again a kid would see that he was losing and grab his remaining marbles and refuse to play any more. This is what Fleischer’s complaint reminds me of. Wealthy people like Ari Fleischer don’t want to play any more because they won’t get the tax breaks they are used to getting for giving some of their money to those less fortunate than themselves. Poor Ari. I expect he cries all the way to the bank. I thought the idea behind charitable giving was to help others, not to get tax breaks. Great wealth seems to cloud the brain.